The $225m acquisition that the company revealed on November 23 was closed, after the effects of the participation rights and other adjustments, for $213m in cash, subject to usual and customary post-closing adjustments.
In a separate transaction in December 2009 the company purchased additional rights and interests in the Wolfberry trend for approximately $47m from multiple private sellers, subject to usual and customary post-closing adjustments. These acquired interests are included in 522 producing wells and 848 identified locations in which the company currently operates.
In conjunction with these transactions, Concho has entered into additional derivatives for all the proved developed producing oil production and a portion of the natural gas production at average prices of $86.23 per barrel and $6.28 per mmbtu for the period from 2010 through 2012.
Timothy Leach, chairman, CEO and president of Concho Resources, said: ”Both of these acquisitions are consistent with our strategy of consolidating interests and acquiring assets in our core areas of operation.
“We plan to add four additional drilling rigs in the Texas Permian by the end of the second quarter on the newly acquired acreage, which we expect will significantly grow production on these assets throughout the year.”
